As the Indian steel making giants mounted their search for raw materials abroad to feed the burgeoning domestic demand for the mettle, the Ruia-controlled Essar Group and Jindal Steel & Power (JSPL) are currently competing to take over a coal mining company in Australia.

According to reports emanating from various sources, the Essar Group has launched a counter bid of about Rs. 600 crore for the acquisition over and above an earlier offer from JSPL. The Essar has offered 50 Australian cents for each share. Rocklands Jindal owns a 10.5 per cent stake in Roacklands mines controlling three metallurgical coal products in the state of Queensland, and made a take over bid of 42 cents a share last month, valuing the company at $108.37 million amounting to Rs. 500 crore in Indian currency.

It is worth mentioning here that the Rocklands Richfield holds a long term license over three highly promising coal fields in the Bowen Basin, Hillalong, Roacklands and Richfield wherein each is known to contain significant deposits of metallurgical coal used in steel making. In all coal resources are estimated to exceed 400 million tons. The take over tussle comes as Indian steel mills ramp up their search for raw material overseas in a bid to feed domestic demand for steel.